Reward 500 Tiger-coinsThis year, US stock market has hit new highs on over 20 days. Investors have been living in constant fear of FOMO amid the continuous rise.
Last night, the market plummeted, and star stocks pulled back. $NVIDIA Corp(NVDA)$ dropped 8% intraday yesterday and closed down 3.5% after losing its recently acquired title as the world's most valuable company to $Microsoft(MSFT)$.
Will you hedge the portfolio risk?
Some investors have shifted from buying calls to buying puts. My short put is losing due to the plunge yesterday.
I’m not sure about whether I should cut losses or hold it tonight as tonight’s trade will be higher volatile.
More volatility tonight?
This Friday, US stock market faces the quarterly "Triple Witching".
According to SpotGamma, approximately $5.5 trillion options of indices, stocks, and ETFs will expire. As these contracts expire, many investors will adjust their positions, potentially leading to a surge in market volume and volatility.
Is the long-awaited market correction finally here?
Or is this just a minor adjustment before the next leg up?
Will you hedge, sell or hold firm?
Leave your comments and also post to win tiger coins!
Comments
what goes up will eventually comes down... is it happening already? [Thinking] [Thinking] [Thinking]
has it reached its peak? [Thinking] [Thinking] [Thinking]
perhaps perhaps perhaps...
$Microsoft(MSFT)$ still the "king" of stocks... [Like] [Like] [Like]
however, I have faith in $NVIDIA Corp(NVDA)$ I very much hope the pull back is just temporary...
the CEO of $NVIDIA Corp(NVDA)$ is the steady type (at least to me) [smile] [smile] [smile]
the rest of the stocks have to trade with caution though... better be safe than sorry...
@GoodLife99 @Shyon @Aqa @HelenJanet @SPACE ROCKET @Universe宇宙 @koolgal @LMSunshine @rL @TigerGPT
Is the long-awaited market correction finally here?
Or is this just a minor adjustment before the next leg up?
Will you hedge, sell or hold firm?
Leave your comments and also post to win tiger coins!
On the other hand, implementing risk management practices, such as setting stop-loss orders and keeping an emergency fund, helped mitigate potential losses and maintain financial stability.
First of all, avoid buying stocks during a downtrend. This will help prevent you getting sucked into a bear market trap. Reversals can be particularly severe at this time.
It is also risky to hold on to a stock during a stock market correction. This is because drawdowns on major indexes pull the majority of stocks down with it.
To make money over the long-term, protecting profits is crucial. Consider selling your weaker holdings, especially if you are holding a small loss or are at break-even.
It is all to easy to switch off and become disengaged from the market when a correction is underway. This is a dangerous mistake because a market bottom can catch you unprepared.
One should be keeping a close eye on the market and building a robust watchlist of top stocks. Look for names that are showing unusual relative strength. The fact a stock is holding up while the broader market is falling is often a good indicator that it is ready to show leadership when an uptrend inevitably resumes.